Nissan Motor Co yesterday said it would seek the removal of Carlos Ghosn after uncovering serious acts of misconduct by the chairman, who faced arrest in Tokyo for violating financial trading law, according to Japanese media reports.
Ghosn, among the most prominent car-industry leaders globally and also the chief executive officer of Renault SA, voluntarily submitted to questioning by Tokyo prosecutors yesterday, Japanese media reported.
Nissan has been conducting an internal investigation over the past several months regarding misconduct involving Ghosn and director Greg Kelly, the Japanese automaker said in a statement.
“The investigation showed that over many years both Ghosn and Kelly have been reporting compensation amounts in the Tokyo Stock Exchange securities report that were less than the actual amount, in order to reduce the disclosed amount of Carlos Ghosn’s compensation,” Nissan said.
The company said it has been providing information to the Japanese prosecutors and is cooperating fully with their investigation.
Ghosn voluntarily went with Tokyo prosecutors, the Asahi Shimbun reported.
A representative for the Tokyo prosecutors said they do not comment on individual cases.
A spokesman for Renault declined to comment.
Shares of the automaker fell as much as 14 percent in Paris, while Nissan global depository receipts sank more than 11 percent.
Among the most prominent car-industry executives globally, Ghosn, 64, built the three-way union of Renault, Nissan and Mitsubishi Motors Corp.
In September, he said that he will continue to pare back his roles at the three individual companies, while continuing to head their alliance.
A spokesman for the French Ministry of Finance declined to comment on the report.
The country owns about 15 percent of Renault and supported Ghosn’s renewal at the helm of the French automaker.
Among the best-paid executives in both Japan and France for several years, Ghosn’s compensation has regularly drawn criticism.
Ghosn receives numerous paychecks in his multiple roles as chairman of the three-way alliance, chief executive officer of Renault, and chairman of both Nissan and Mitsubishi.
At Nissan, he was paid about ￥1.1 billion (US$10 million) for 2016 and about US$6.5 million in the most recent fiscal year.
He took home about US$8.5 million at Renault and about US$2 million from Mitsubishi in the latest period.
At Renault, his package for last year was narrowly passed by Renault shareholders, but only after he agreed to a 20 percent reduction.
Ghosn has been contemplating his career moves as the companies plan to change the pact’s structure, possibly through a merger.
PROTECTIONISM: China hopes to help domestic chipmakers gain more market share while preparing local tech companies for the possibility of more US sanctions Beijing is stepping up pressure on Chinese companies to buy locally produced artificial intelligence (AI) chips instead of Nvidia Corp products, part of the nation’s effort to expand its semiconductor industry and counter US sanctions. Chinese regulators have been discouraging companies from purchasing Nvidia’s H20 chips, which are used to develop and run AI models, sources familiar with the matter said. The policy has taken the form of guidance rather than an outright ban, as Beijing wants to avoid handicapping its own AI start-ups and escalating tensions with the US, said the sources, who asked not to be identified because the
FALLING BEHIND: Samsung shares have declined more than 20 percent this year, as the world’s largest chipmaker struggles in key markets and plays catch-up to rival SK Hynix Samsung Electronics Co is laying off workers in Southeast Asia, Australia and New Zealand as part of a plan to reduce its global headcount by thousands of jobs, sources familiar with the situation said. The layoffs could affect about 10 percent of its workforces in those markets, although the numbers for each subsidiary might vary, said one of the sources, who asked not to be named because the matter is private. Job cuts are planned for other overseas subsidiaries and could reach 10 percent in certain markets, the source said. The South Korean company has about 147,000 in staff overseas, more than half
Taipei is today suspending its US$2.5 trillion stock market as Super Typhoon Krathon approaches Taiwan with strong winds and heavy rain. The nation is not conducting securities, currency or fixed-income trading, statements from its stock and currency exchanges said. Yesterday, schools and offices were closed in several cities and counties in southern and eastern Taiwan, including in the key industrial port city of Kaohsiung. Taiwan, which started canceling flights, ship sailings and some train services earlier this week, has wind and rain advisories in place for much of the island. It regularly experiences typhoons, and in July shut offices and schools as
CHEMICAL FIRE: 10 Indian employees were injured by smoke inhalation at a Tata Electronics plant in Tamil Nadu state that produces components for Apple Inc At least 10 people received medical treatment, with two hospitalized after a major fire on Saturday disrupted production at a key Tata Electronics Pvt Ltd plant in southern India that makes Apple Inc’s iPhone components. The fire occurred at the plant in the city of Hosur in Tamil Nadu state that makes some iPhone components. It broke out near another building inside the Tata complex, which was to begin producing complete iPhones in the coming months. The fire was contained to one building and has been extinguished fully, top district administrative official K.M. Sarayu said. No decision has been made on when
RSS